Thames Water Ltd
Thames Water Ltd is registered for VAT and is in the process of completing its VAT return for the quarter ended 31 March 2023. The following information is available, and unless otherwise stated, all the above figures are exclusive of VAT:
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Sales invoices totalling £128,000 were issued in respect of standard rated sales. Thames Water Ltd offers its customers a 2.5% discount for prompt payment, 50% of customers pay early enough to receive this discount.
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Standard rated expenses amounted to £74,800. This includes £4,200 for entertaining customers.
Required: Calculate Thames Water VAT liability for the quarter ended 31 March 2023. State the date the VAT would be payable to HMRC and the date by which the VAT100
return must be filed.
3.2) Early in February 2022 Vera was told that she would be made redundant, this happened on 6 April 2022. The severance package that she received in 2022/23 was:
differently.
Statutory redundancy
Non-statutory redundancy, ex gratia
Signing a non-disclosure/non-competition agreement
£4,000 £20,000 £10,000
Required: Outline the tax treatment of the redundancy package and explain how the tax liability on the redundancy package could have been reduced if the £34,000 has been split
3.3) You work for the Chartered Accountancy firm Bevan&Bevan Ltd, which has, for many years, been engaged to perform accounting and corporation tax work. Currently, you have discover that some practices are incorrect, and some behaviours could even be label as tax evasion.
Required: Explain the code of conduct and its importance for preventing such behaviours
and actions that could be taken.
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